We hope you enjoy some quality time with friends and family this labor day weekend. We’ll be back Tuesday, September 5, ready to assist you in meeting all your government relations compliance needs! Have a great holiday weekend!

The North Carolina General Assembly adjourned on August 31 after finishing a two-week special session.

Members voted on new legislative districts per court order and voted to override two vetoes by the governor.

The Legislature will reconvene on October 4, 2017, to consider constitutional amendments, election regulations, and to draw new judicial districts.

Becky is here to recap all the government, ethics and elections news from around the country.

On August 31, the Arizona Corporation Commission held a workshop to develop a code of ethics for the commission. Commission staff presented an overview of various Arizona statutes and rules covering open meetings, conflicts of interest, financial disclosures, gifts, and lobbyists, according the commission’s press release.

The Arizona Corporation Commission is responsible for the regulation of public utilities, the oversight of incorporation or registration of companies wishing to do business in Arizona, the registration of securities offerings and dealers, and the enforcement of railroad and pipeline safety. The five commissioners making up the commission are elected officials.

The code of ethics will next be considered by the commission’s Ethics Committee on September 15.

Maine Gov. Paul LePage has indicated he plans to call the Legislature into a special session later this year.

LePage wants a special session to amend Legislative Document 725, because it conflicts with federal law regarding meat and poultry inspection programs.

LePage did not state when he intends to call the special session.

Gov. Kim Reynolds stated she will decide whether to call a special session of the Iowa Legislature in September. A special session may be needed to fix state budgetary shortfalls.

Reynolds has the authority to transfer money from the cash reserve fund if the deficit is $50 million or below.

If the deficit exceeds $50 million the Legislature would need to be called back for a special session.

National:

Campaign Regulation Foes Targeting State-Level Restrictions
Center for Public Integrity – Ashley Balcerzak | Published: 8/31/2017

Having won significant battles at the federal level over campaign finance laws, political groups and libertarian nonprofits are now targeting state-level rules in district and appellate courts across the country. The effects could be wide-ranging. The most notable battles deal with when groups need to disclose their donors, and whether contribution limits trample on donors’ freedoms of speech and expression.

The New Front in the Gerrymandering Wars: Democracy vs. math
New York Times – Emily Bazelon | Published: 8/29/2017

Wisconsin Republicans tried hard to keep their legislative mapmaking process a secret, but they were not successful. In the first of two lawsuits brought by Democratic voters, three federal judges berated GOP leaders in 2012 for ‘‘flailing wildly in a desperate attempt to hide’’ their methods to assure Republican control of the state Legislature. A court ordered Republicans to turn over three computers. In 2016, a computer expert hired by the plaintiffs found spreadsheets that used a powerful new gerrymandering tool, based on sophisticated computer modeling.

Federal:

How to Get Rich in Trump’s Washington
New York Times – Nicholas Confessore | Published: 8/30/2017

Interests that have spent millions of dollars lobbying in Washington, D.C. were surprised by Donald Trump’s victory last November. By the end of his first 100 days in office, it seemed, Trump had not so much “drained the swamp” as enshrouded it in a fog of uncertainty. No previous president had changed his mind more often, or contradicted his cabinet so frequently, or permitted such ideological combat in the White House. Big corporations and trade associations did not quite know what to expect. But mostly, they did not know whom to contact. All of this inadvertently created an entirely new business model for Trump’s friends and former employees.

Members of Congress Scoring Personal Loans from Political Supporters
Center for Public Integrity – Nicholas Jahr and Ellen McCreary Ionas | Published: 8/29/2017

A review of financial disclosure forms filed by current members of the U.S. House and Senate reveals at least 19 have accepted loans from organizations or wealthy individuals instead of a bank or traditional financial institution. Often, these organizations and individuals rank among the lawmakers’ key political supporters. In two of these cases, the loans were made to members’ spouses. The loans range in value from $15,000 to $5 million. There is nothing illegal about such loans, even when the lender is also a campaign donor. But watchdog groups say such arrangements raise concerns about possible conflicts-of-interest.

Washington Lobbying Firms Receive Subpoenas as Part of Russia Probe
Washington Post – Carol Leonnig and Tom Hamburger | Published: 8/25/2017

Special counsel Robert Mueller issued grand jury subpoenas asking public relations and lobbying firms to provide records regarding their interactions with the consulting firms led by Michael Flynn, a former national security adviser to President Trump, and Paul Manafort, former chairperson of the Trump presidential campaign. The requests suggest Mueller’s investigators are looking closely at Manafort and Flynn, both of whom face possible legal jeopardy for allegedly failing to disclose foreign governments or parties may have been the beneficiaries of their consulting and lobbying work, as they seek potential links between Trump’s campaign and Russia.

From the States and Municipalities:

California
3 of 4 Colonies Corruption Defendants Found Not Guilty on All Charges
San Bernardino Sun – Joe Nelson and Richard Deatley | Published: 8/28/2017

Developer Jeff Burum and two former San Bernardino County officials – former Supervisor Paul Biane, and Mark Kirk, former chief of staff for then-county Supervisor Gary Ovit – were found not guilty of bribery, conflict-of-interest, and improper influence in an alleged scheme to get county approval of a $102 million court settlement in favor of a developer. Prosecutors alleged Burum paid $400,000 in political contributions to the defendants and former Board of Supervisors Chairperson Bill Postmus, who later entered a plea bargain with prosecutors and testified at the trial. The money, investigators alleged, were actually bribes or payments for delivering the settlement.

Florida
FBI Arranged Outings for Gillum, Others During NYC Trip
Tallahassee Democrat – Jeff Burlew | Published: 8/25/2017

The FBI may have tried to entice Tallahassee Mayor Andrew Gillum through one of his close friends to see a Broadway show, catch a Major League Baseball game, and stay at a New York City hotel as part of its investigation into alleged public corruption in Tallahassee. Gillum, who had room reservations elsewhere, will not say if he stayed at or visited the Millennium Hotel in Manhattan, where an FBI agent posing as a developer had arranged rooms for him and others. He also will not say if he attended “Hamilton” or went to the New York Mets game. Public officials such as Gillum are required to report gifts valued over $100, though there are exceptions.

Georgia
White Lawmaker Warns Black Attorney She May ‘Go Missing’ If Confederate Statues Are Threatened
Washington Post – Cleve Wootson Jr. | Published: 8/30/2017

Georgia Rep. Jason Spencer said a former Democratic lawmaker might “go missing” if she continues to criticize Confederate statues. Spencer originally posted a photo with a memorial for Confederate President Jefferson Davis, saying the statue was Georgia’s history and used the hashtag #DealWithIt in a Facebook post. That prompted a response from former state Rep. LaDawn Jones, who told Spencer to “put your hoods and your tiki torches away. We are no longer afraid.” Spencer then said those who criticize the state’s Confederate history “will go missing in the Okefenokee” because people in South Georgia “will not put up with it like they do in Atlanta.”

Idaho
Lawmakers: Idaho ‘uniquely poised’ to stiffen campaign, lobbying disclosure requirements
Spokane Spoesman-Review – Betsy Russell | Published: 8/28/2017

Idaho lawmakers are mulling several key changes to the state’s campaign finance and lobbying laws. A bipartisan working group met for a second time to hear possible recommendations from the state’s top lobbyists and Secretary of State Lawerence Denney. The goal is to have the panel submit suggestions to before the 2018 legislative session begins in January. Some of the proposals would place new reporting requirements on PACs, and require lobbyists to report their expenditures year-round, rather than just during the legislative session.

Iowa
Special Interest Groups Spend Big at Iowa Capitol
Des Moines Register – Brianne Pfannenstiel | Published: 8/24/2017

A Des Moines Register analysis showed special interest groups in Iowa paid lobbyists about $20.4 million last year in an effort to sway policy on issues ranging from Medicaid to workers’ compensation to legalized fireworks. The data provide a broad look at who is vying for influence at the Capitol during a year in which Republicans took control of the House, Senate, and governor’s office for the first time in nearly 20 years. With the new power dynamic, many groups may choose to “lobby up,” either to capitalize on their new opportunity or to fight perceived threats, said lobbyist Jim Carney.

Kentucky
Ethics Group Wants to Know What Led Mnuchin to View Eclipse in Kentucky
Washington Post – Drew Harwell and Beth Reinhard | Published: 8/24/2017

Citizens for Responsibility and Ethics in Washington is seeking records detailing the cost of Treasury Secretary Steve Mnuchin’s recent trip to Kentucky in a government plane, saying it “seems to have been planned around the solar eclipse.” Mnuchin and his wife, Louise Linton, watched the eclipse from the lawn of Fort Knox in Kentucky, which was just outside the path of totality. It was Linton’s sharing of the expensive designer labels of her outfit as she stepped off the plane in Kentucky in an Instagram post and her subsequent rant against a commenter who criticized it that first raised eyebrows.

Massachusetts
In Massachusetts, Lobbyists Outnumber Lawmakers Seven-to-One
WWLP – Steve LeBlanc (Associated Press) | Published: 8/27/2017

There are now more than seven lobbyists for each of the 200 state lawmakers in Massachusetts. From 2006 to 2016, the number of active lobbyists jumped by about 1,000. A big part of the increase is due to a law that took effect in 2009 aimed at sharpening the definition of a lobbyist. Before the new law, an individual was not considered to be a lobbyist if he or she spent less than 50 hours lobbying, or received less than $5,000 in lobbying fees, during each six-month reporting period. The new law tightened that to 25 hours, or $2,500.

Michigan
Attorney: Michigan super PACs face ‘firestorm’ of fines
Detroit News – Jonathan Oosting | Published: 8/28/2017

Attorney Bob LaBrant asked Michigan Secretary of State Ruth Johnson’s office to clarify state rules governing super PAC contributions in the wake of a U.S. Supreme Court ruling in 2012 that opened the doors for unlimited but independent political spending as a form of free speech. Michigan has not updated its campaign finance laws to reflect the decision, and LaBrant argues a little-known state Bureau of Elections action in 2014 could lay the groundwork for a “firestorm” of complaints and fines that would cut across business, labor, conservative, and liberal donors.

Montana
Discounted Sale of US Interior Secretary’s Motor Home Raises Questions
ABC News – Bobcaina Calvin (Associated Press) | Published: 8/28/2017

U.S. Interior Secretary Ryan Zinke’s dormant congressional campaign committee recently sold a 2004 motor home at a steep discount to Montana Sen. Ed Buttrey. But a seemingly ordinary transaction between friends, when seen through the optics of stringent campaign finance laws, can raise a bevy of questions. After learning about the transaction, watchdogs are raising a $25,000 question: Why would Zinke’s campaign committee sell the Kountry Star Freightliner for half the price of its apparent $50,000 market value? The FEC prohibits political committees to sell assets, including campaign vehicles, below fair market value.

Washington
Is Olympia Lawyer the Democrats’ Champion in Complaint-Filing War?
Tacoma News Tribune – Melissa Santos | Published: 8/27/2017

A conservative activist has been taking aim at Democrats and liberal groups for the past year, filing at least 120 complaints saying they have broken Washington state’s campaign finance laws. Now, someone is turning the tables, saying conservative Glen Morgan and a group he leads have committed some of the same financial reporting violations. Walter Smith, an Olympia attorney, said he is concerned that the state’s campaign finance laws are being enforced unevenly due to the volume of complaints Morgan has filed against Democratic candidates in recent months.

State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

At its August 28, 2017, meeting, the San Francisco Ethics Commission discussed the adoption of the 2017 San Francisco Anti-Corruption and Accountability Ordinance to revise city campaign and government conduct laws.

The ordinance would create a series of new rules to reduce the incidence of pay-to-play politics by increasing the applicability of current pay-to-play laws to encompass more parties seeking contracts with the city. The ordinance would also create new limits and disclosure requirements on contributions and behested payments.

The commission voted 4-0 to continue the matter to its next meeting on September 25, 2017.

On October 2, a provincial byelection will be held in the Quebec City riding of Louis-Hébert for the Quebec National Assembly.

The election will be held to fill the vacant seat of former Member of the National Assembly Sam Hamad, who resigned in April to return to private life.

The election will fill the only remaining vacant seat in the National Assembly.

Lobbying

“How to Get Rich in Trump’s Washington” by Nicholas Confessore for New York Times

Oregon: “Marijuana Lobbyists Harvest Cash from Bankers, Accountants, Lawyers and Others” by Scott Thistle for Portland Press Herald

Utah: “State Lawmaker Chosen to Head Utah Technology Council Advocacy Group” by Lee Davidson for Salt Lake Tribune

Campaign Finance

Arizona: “Utility Regulators Consider Giving Service Territory to Campaign Donors” by Ryan Randazzo for Arizona Republic

Ethics

“DOJ Is Investigating Whether Uber Broke the Law Against Foreign Bribery” by Elizabeth Dwoskin for Washington Post

“Members of Congress Scoring Personal Loans from Political Supporters” by Nicholas Jahr and Ellen McCreary Ionas for Center for Public Integrity

Alaska: “New Ballot Initiative Targets Legislators’ Per Diem Pay” by James Brooks for Juneau Empire

New York: “State Worker Is Interrogated for Allegedly Letting Someone in the Building” by Rick Karlin for Albany Times Union

Procurement

Missouri: “KCI Contract Selection Delayed by Conflict of Interest Complaint against Justus” by Steve Vockrodt and Lynn Horsley for Kansas City Star

Following suggestions from a working group of the legislature, Sec. of State Lawerence Denney presented a series of ethics and campaign finance draft bills to improve the state’s public disclosure system.

The suggested changes include limiting PACs from accepting more than $1,000 from other PACs unless the contributing PAC is registered with the state, removing an exception for local election reporting, increasing the frequency of campaign finance reporting, and requiring lobbyists to report all year, rather than only while the legislature is in session. Increasing fines for reporting violations is also on the table.

With ample funding available, the Sec. of State’s office would also like to see major improvements to the online reporting system. Critics are concerned increased reporting would be too burdensome and dissuade citizens from getting involved in the political process.

An Alaska ballot initiative has been proposed to limit perks received by lawmakers.

The proposed Alaska Government Accountability Act would limit lawmakers and aides from accepting meals or drinks purchased by lobbyists by restricting the acceptance of food and drink from a lobbyist to de minimis and non-alcoholic items for immediate consumption. It would also ban corporations with five percent or more non-U.S. ownership from spending money on campaigns that target individual candidates.

The initiative sponsors are aiming for the proposal to appear on the 2018 ballot and are still in the process of collecting the necessary signatures.

On August 28, a judge upheld a ban on the public financing of local campaigns, invalidating last year’s reforms put in place by Senate Bill 1107.

The Sacramento Superior Court ruled in favor of plaintiffs, Howard Jarvis Taxpayers Association and retired State Senator and Judge Quentin L. Kopp, invalidating SB 1107 and ruling that the matter must be sent to voters on a statewide ballot.

SB 1107 was passed in 2016 and allowed any municipality the option to create systems for publicly funded campaigns. In the absence of SB 1107, only six charter cities can offer limited public funds to match small campaign donations.

Lobbying

“Exclusive: Bloomberg charity scrutinized by India for anti-tobacco funding, lobbying – documents” by Aditya Kalra for Reuters

Campaign Finance

Michigan: “Attorney: Michigan super PACs face ‘firestorm’ of fines” by Jonathan Oosting for Detroit News

Montana: “Discounted Sale of US Interior Secretary’s Motor Home Raises Questions” by Bobcaina Calvin (Associated Press) for ABC News

Ethics

California: “3 of 4 Colonies Corruption Defendants Found Not Guilty on All Charges” by Joe Nelson and Richard Deatley for San Bernardino Sun

Colorado: “Emails Raise Ethical Questions About Colorado Lawmaker. But He Says There’s Nothing to See.” by Jesse Paul for Denver Post

Idaho: “Lawmakers: Idaho ‘uniquely poised’ to stiffen campaign, lobbying disclosure requirements” by Betsy Russell for Spokane Spoesman-Review

Elections

“Top Trump Organization Executive Asked Putin Aide for Help on Business Deal” by Rosalind Helderman, Carol Leonnig, and Tom Hamburger for Washington Post

Legislative Issues

North Carolina: “Court Weighs Legislature’s Stripping of Cooper’s Powers” by Emery Dalesio (Associated Press) for Ashville Citizen-Times

Redistricting

“The New Front in the Gerrymandering Wars: Democracy vs. math” by Emily Bazelon for New York Times